Work

Optimal Pricing Strategies and Inventory Management for Fresh Food Products in Sustainable Cold Chain: Analytical Modeling with Korean Market Validation

Year: 2025

Type: article

Abstract: With rising consumer concerns regarding food safety, cold chain management—which preserves product freshness through low-temperature distribution—has emerged as a critical competitive factor for retailers. This study examines how retail firms can manage quality deterioration over time to maximize profits, with a focus on pricing strategies and discard rates. Through game-theoretic modeling and empirical data analysis of milk products, we find that while individual items exhibit no consistent pattern, bundled fresh food items demonstrate an inverted U-shaped relationship between discount rates and profits, indicating an optimal discount level. Furthermore, we identify a U-shaped relationship between order quantity and disposal rate, highlighting the importance of determining optimal inventory levels to minimize waste and maximize efficiency for a sustainable competitiveness.

Source: Sustainability

DOI: 10.3390/su17177680

Authors: Sunghee Lee, Jinsoo Park

Institutions: Hoseo University, Jeonju University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: gold

Estimated APC paid: $2,896